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Gold Plus Industry to raise Rs 1,200 crore via IPO

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Gold Plus Industry to raise Rs 1,200 crore via IPO

MUMBAI: Premji Invest-backed Gold Plus Glass Industry plans to raise up to Rs 1,200 crore through an initial public offer. It plans to use the proceeds on boosting capacity.

The company has appointed nearly half a dozen investment bankers including Jeffries and Axis Securities, market sources told ET.

“The company may file the Draft Red Herring Prospectus (DRHP) by December or January and the share sale may be launched early next calendar year,” said one of the persons cited above.

Gold Plus Glass did not respond to ET’s query. Jeffries and Axis could not be contacted immediately for comments.

Promoters of the company are likely to reduce their stake through the IPO, while some other existing investors could partially exit through the proposed IPO, sources said.

The company is setting up three manufacturing lines in Karnataka including one solar glass and two float glass production lines.

While solar glass is used in solar panels that produce electricity, float is a kind of distortion free material used for domestic purposes.

Collectively, those three additions are likely to culminate in additional capacity estimated at 1,900 tonnes per day. The company’s existing production lines generate about 1,250 tonnes per day.

The gestation period of the new project is about two-three years. The total project outlay is said to be in the range of Rs 2,200-2,300 crore.

The company is said to have finalized the land parcel in Karnataka, and the project is set to resume as per the planned schedule. With the proposed additional capacity expansion, the company is looking to garner yearly revenue of Rs 3,000 crore.

In 2018, Premji Invest, the family office of Wipro chairman Azim Premji, had invested Rs 400 crore in the company.

Gold Plus has two float lines in Roorkee, Uttarakhand.

“The company aims to emerge as the largest domestic producer of glass amid rising global demand for float glass post the pandemic,” said a banker involved in the process. It is also seeking to expand its share of exports through local productions.

Saint-Gobain, Asahi Glass, and Gujarat Guardian Glass are among the leaders in India’s glass industry.

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